A Business at a Glance
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UNIVERSAL DISPLAY CORP \PA\
OLED
$3.8B
Mkt Cap
$79.27
-0.19%
UNIVERSAL DISPLAY CORP \PA\ (OLED) has a current P/E ratio of 15.6, compared to its historical median P/E of 48.9. The stock is currently considered Cheap based on its historical valuation range.
UNIVERSAL DISPLAY CORP \PA\ (OLED) has a 5-year average return on invested capital (ROIC) of 29.3%. This indicates strong capital allocation and a potential competitive advantage.
UNIVERSAL DISPLAY CORP \PA\ (OLED) has a market capitalization of $3.7B. It is classified as a mid-cap stock.
Yes, UNIVERSAL DISPLAY CORP \PA\ (OLED) pays a dividend with a trailing twelve-month yield of 2.36%. The company also returns capital through share buybacks, with a buyback yield of 0.89%.
Based on historical P/E analysis, UNIVERSAL DISPLAY CORP \PA\ (OLED) appears cheap. The current P/E of 15.6 is 68% below its historical median of 48.9. The estimated fair value CAGR (P/E method) is 14.7%.
UNIVERSAL DISPLAY CORP \PA\ (OLED) operates in the Electronic Components & Accessories industry, within the Technology sector.
Universal Display Corporation is a leader in the research, development, and commercialization of organic light-emitting diode (OLED) technologies and materials for display and solid-state lighting applications. The company operates a capital-light, high-margin business model centered on two primary revenue streams: the sale of proprietary OLED materials (particularly phosphorescent emitter materials) to display manufacturers, and the licensing of its extensive patent portfolio and know-how to OLED device makers. The company manufactures no end-products itself; instead, it sells materials on a just-in-time basis to customers such as Samsung Display, LG Display, BOE, and others, while simultaneously licensing its technologies under agreements that generate fixed fees and running royalties based on customer sales. Universal Display's competitive moat rests on its pioneering development of phosphorescent OLED (PHOLED) technology, ownership or exclusive licensing of more than 7,000 patents worldwide, over 20 years of deep customer relationships with leading OLED manufacturers, and proprietary know-how accumulated through internal R&D and academic partnerships. The company serves a diverse and growing set of end-markets including smartphones, televisions, monitors, wearables, tablets, notebooks, personal computers, augmented and virtual reality devices, and automotive applications, with OLED displays capturing increasing share from LCD technology due to superior power efficiency, contrast, viewing angles, and form factor advantages. Its manufacturing partner PPG produces materials using proprietary processes, which the company then qualifies and resells, while the company also operates Application Centers in the Asia-Pacific region and manufacturing facilities in Shannon, Ireland and New Jersey to support customer development and production needs.
【Capacity-driven growth ahead】 Management expects the OLED industry to enter a multi-year expansion phase driven by new manufacturing capacity coming online, particularly Samsung Display's and BOE's first-generation Gen 8.6 fabs in 2026, which will support growing demand in IT displays, automotive, and foldable applications. The company anticipates mid-single-digit revenue growth in 2026 aligned with projected OLED display area growth, with the second half of the year expected to be stronger than the first half as new capacity ramps and product cycles advance. While near-term visibility has declined due to macroeconomic uncertainty and smartphone market softness, management remains constructive on the long-term OLED adoption trajectory, particularly in IT where penetration is only about 5% and units are forecast to more than triple by 2030. The company is investing in its R&D capabilities, including materials discovery and device modeling, to meet rising performance specifications across brightness, efficiency, lifetime, and color, while managing gross margins in the 74%-76% range due to higher raw material costs, particularly iridium.
| Metric | Target | Period |
|---|---|---|
| Revenue | $630 million–$670 million | FY2026 |
| Gross margin | 74%–76% | FY2026 |
| Operating margin | 34%–37% | FY2026 |
| Effective tax rate | approximately 19% | FY2026 |
| Materials to royalty and licensing revenue ratio | approximately 1.3 to 1 | FY2026 |
Revenue (FY2026): “we believe it is prudent to revise our full-year revenue guidance range to $630 million-$670 million from our prior guidance range of $650 million-$700 million”
Gross margin (FY2026): “Total gross margins are expected to be approximately in the range of 74%-76% as a result of higher raw material pricing”
Operating margin (FY2026): “2026 operating margins are expected to be in the range of 34%-37%”
Effective tax rate (FY2026): “We expect the effective tax rate for 2026 to be approximately 19%”
Materials to royalty and licensing revenue ratio (FY2026): “We estimate that our ratio of materials to royalty and licensing revenues will be in the ballpark of 1.3 to 1”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: FY2026 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 627M | 651M | 648M | 576M | 617M | 554M |
| Net Income | 213M | 242M | 222M | 202M | 209M | 183M |
| EPS | $4.51 | $5.08 | $4.65 | $4.24 | $4.40 | $3.87 |
| Free Cash Flow | 237M | 154M | 211M | 95M | 84M | 148M |
| ROIC | 15.3% | 17.5% | 18.6% | 21.4% | 34.9% | 54.2% |
| Gross Margin | 75.7% | 76.3% | 77.1% | 76.5% | 79.3% | 79.2% |
| Debt/Equity | 0.00 | 0.02 | 0.03 | 0.03 | 0.05 | 0.05 |
| Dividends/Share | $1.87 | $1.80 | $1.60 | $1.40 | $1.20 | $0.00 |
| Operating Income | 222M | 249M | 239M | 217M | 267M | 228M |
| Operating Margin | 35.4% | 38.2% | 36.9% | 37.7% | 43.3% | 41.1% |
| ROE | 12.5% | 14.3% | 14.5% | 14.8% | 17.6% | 18.2% |
| Shares Outstanding | 47M | 48M | 48M | 48M | 47M | 47M |
UNIVERSAL DISPLAY CORP \PA\ passes 8 of 9 quality checks, indicating strong fundamentals.
UNIVERSAL DISPLAY CORP \PA\ trades at 15.6x trailing earnings, compared to its 15-year median P/E of 48.9x, suggesting it is currently Cheap relative to its historical range. On a free-cash-flow basis, the stock trades at 24.2x vs a median of 53.5x. The company's 5-year average ROIC is 29.3% with a gross margin of 77.7%. Total shareholder yield (dividends + buybacks) is 3.3%. At current prices, the estimated annualized return to fair value is +0.0%.
UNIVERSAL DISPLAY CORP \PA\ (OLED) reported annual revenue of $651 million in its most recent fiscal year, based on SEC EDGAR filings.
UNIVERSAL DISPLAY CORP \PA\ (OLED) has a net profit margin of 37.2%. This is a strong margin indicating high profitability.
UNIVERSAL DISPLAY CORP \PA\ (OLED) generated $154 million in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
UNIVERSAL DISPLAY CORP \PA\ (OLED) has a debt-to-equity ratio of 0.02. This indicates a conservatively financed balance sheet.
UNIVERSAL DISPLAY CORP \PA\ (OLED) reported earnings per share (EPS) of $5.08 in its most recent fiscal year.
UNIVERSAL DISPLAY CORP \PA\ (OLED) has a return on equity (ROE) of 14.3%. This indicates moderate shareholder returns.
UNIVERSAL DISPLAY CORP \PA\ (OLED) has a 5-year average gross margin of 77.7%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 17 years of financial data for UNIVERSAL DISPLAY CORP \PA\ (OLED), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
UNIVERSAL DISPLAY CORP \PA\ (OLED) has a book value per share of $36.98, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects the OLED industry to enter a multi-year expansion phase driven by new manufacturing capacity coming online, particularly Samsung Display's and BOE's first-generation Gen 8.6 fabs in 2026, which will support growing demand in IT displays, automotive, and foldable applications. The company anticipates mid-single-digit revenue growth in 2026 aligned with projected OLED display area growth, with the second half of the year expected to be stronger than the first half as new capacity ramps and product cycles advance. While near-term visibility has declined due to macroeconomic uncertainty and smartphone market softness, management remains constructive on the long-term OLED adoption trajectory, particularly in IT where penetration is only about 5% and units are forecast to more than triple by 2030. The company is investing in its R&D capabilities, including materials discovery and device modeling, to meet rising performance specifications across brightness, efficiency, lifetime, and color, while managing gross margins in the 74%-76% range due to higher raw material costs, particularly iridium.
Based on recent SEC filings and earnings calls, UNIVERSAL DISPLAY CORP \PA\ (OLED) has provided the following forward guidance: Revenue: $630 million–$670 million (FY2026); Gross margin: 74%–76% (FY2026); Operating margin: 34%–37% (FY2026); Effective tax rate: approximately 19% (FY2026); Materials to royalty and licensing revenue ratio: approximately 1.3 to 1 (FY2026).
No recent press releases.